If you’re in Atlanta, you should visit the Beltline.
The Beltline is a 22-mile loop of walking trails, streetcars, and residential neighborhoods
that surrounds the city. The entire loop is a public good: anyone can enjoy it for
free, and many people can enjoy it simultaneously without reducing one another’s
utility.
Free-riders—the
consumers who use the Beltline without having paid for its construction—take
advantage of the Beltline. The city has financed the project, at least in part,
through Tax
Allocation Districts. These districts forgo future property taxes in
order to fund current infrastructure projects. In other words, businesses and
residents in Atlanta pay for the Beltline. Since an individual’s choice to
enjoy the loop does not have a noticeable impact overall, and since the loop is
not excludable, individuals are incentivized to use the trails without paying
for the development.
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